Vishal Nirmiti nearly doubles MS-pipe capacity, utilisation falls

Vishal Nirmiti increased mild-steel, or MS, pipe fabrication capacity to 154,000 metric tonnes in Fiscal 2026 from 81,000 tonnes in Fiscal 2025, while output rose to 62,710 tonnes from 48,260 tonnes. Reported utilisation consequently fell to 40.72% from 59.58%, a decline of 18.86 percentage points.

Why did Vishal Nirmiti's MS-pipe capacity utilisation fall?

Vishal Nirmiti's MS-pipe capacity utilisation fell because installed capacity rose 90.12% in Fiscal 2026 while actual production increased 29.94%. Installed capacity increased by 73,000 tonnes to 154,000 tonnes, whereas production rose by 14,450 tonnes to 62,710 tonnes. The difference left 91,290 tonnes of reported capacity unutilised in Fiscal 2026, compared with 32,740 tonnes in Fiscal 2025.

The lower Fiscal 2026 ratio followed a smaller decline in Fiscal 2025. Production rose 71.19% in Fiscal 2025 from Fiscal 2024, but capacity rose 80.00%, reducing utilisation from 62.65% to 59.58%. The Fiscal 2026 figures were certified by Vrishak Engineering in a certificate dated July 23, 2026.

Vishal Nirmiti states that reported pipe capacity and utilisation are determined by pipe diameter. Smaller-diameter pipes typically result in lower production and utilised capacity, while larger-diameter pipes typically result in higher production and utilised capacity. This measure explains the 102.00% utilisation reported at Jhabbua, Madhya Pradesh in Fiscal 2024, when capacity had been assessed for smaller-diameter pipes but orders required larger-diameter production.

Which sites drove Vishal Nirmiti's MS-pipe capacity increase?

Vishal Nirmiti's Fiscal 2026 capacity increase was led by Kukshi, Madhya Pradesh, Raigad, Maharashtra, and Nabarangpur, Odisha. Kukshi accounted for 66,000 tonnes of installed capacity, Raigad expanded to 40,000 tonnes from 18,000 tonnes in Fiscal 2025, and Nabarangpur accounted for 12,000 tonnes. The Fiscal 2026 table no longer included the 12,000-tonne Pakur and 15,000-tonne Jhabbua sites reported in Fiscal 2025.

Kukshi was Vishal Nirmiti's largest MS-pipe site by Fiscal 2026 capacity, but produced 10,996 tonnes and reported 16.66% utilisation. Gandhisagar, Madhya Pradesh had 18,000 tonnes of capacity and produced 2,596 tonnes, or 14.42% utilisation. Together, Kukshi and Gandhisagar represented 84,000 tonnes, or 54.55%, of total Fiscal 2026 capacity but 13,592 tonnes, or 21.67%, of production.

Raigad produced 32,671 tonnes in Fiscal 2026, equal to 52.10% of Vishal Nirmiti's total MS-pipe output, from 40,000 tonnes of capacity at 81.68% utilisation. Palthan, Maharashtra retained 18,000 tonnes of capacity but produced 7,737 tonnes, reducing utilisation to 42.98% from 66.00% in Fiscal 2025. Nabarangpur produced 8,710 tonnes and reported 72.58% utilisation.

Does Vishal Nirmiti's order book support MS-pipe production?

Vishal Nirmiti reported Rs 146.80 crore of balance orders for MS pipes and MS liners as of June 30, 2026, equal to 25.23% of its consolidated Rs 581.77 crore order book. The MS-pipe and liner category comprised eight contracts with aggregate contract value of Rs 235.62 crore. A balance order measures work remaining under the disclosed contracts, rather than tonnage scheduled for fabrication in a particular fiscal year.

The largest disclosed MS-pipe balance was Rs 43.13 crore at Kukshi for Larsen & Toubro Limited. Other major balances included Rs 38.34 crore at Phaltan, Maharashtra for Raju Infrastructure Development (India) Private Limited and Rs 25.75 crore at Khanapur Belgaum, Karnataka for an unnamed private infrastructure company. The listed MS-pipe balances identify pending project work, but fabrication depends on purchase-order releases and contract execution.

Vishal Nirmiti classifies a tender as an ongoing order-book project if a contract or tender has been executed but purchase orders remain to be received, work remains under purchase orders, or amounts remain to be realised. Fiscal 2026 orders in hand numbered 70 and had contract value of Rs 1,280.10 crore, compared with 69 orders worth Rs 758.46 crore in Fiscal 2025. The June 30, 2026 order book is therefore a later balance measure and not directly comparable with annual contract value.

Is lower utilisation limited to Vishal Nirmiti's MS-pipe business?

Vishal Nirmiti reported lower utilisation in its prestressed concrete, or PSC, sleeper and pre-cast businesses as well, although the underlying capacity changes differed. PSC sleeper capacity remained unchanged at 1,100,124 units in Fiscal 2024, Fiscal 2025 and Fiscal 2026. Production fell to 715,673 units in Fiscal 2026 from 837,042 units in Fiscal 2025, reducing utilisation to 65.05% from 76.09%.

Mohol, Maharashtra reported the highest PSC-sleeper utilisation in Fiscal 2026 at 93.84%, producing 221,751 units from capacity of 236,304 units. Timba, Gujarat reported 35.08% utilisation, producing 91,189 units from 259,944 units of capacity, while Bankhedi, Madhya Pradesh produced 276,720 units at 76.05% utilisation. Unlike the MS-pipe business, total sleeper capacity did not expand before the Fiscal 2026 ratio declined.

At Nadiad, Gujarat, noise-barrier capacity declined to 54,000 tonnes in Fiscal 2026 from 60,000 tonnes in Fiscal 2025, while output fell to 25,645 tonnes from 55,605 tonnes. Utilisation therefore declined to 47.49% from 92.68%. Cable-duct capacity increased to 72,000 tonnes from 66,000 tonnes, but output increased only to 37,995 tonnes from 36,939 tonnes, reducing utilisation to 52.77% from 55.97%.

Conclusion

Vishal Nirmiti established a substantially larger MS-pipe fabrication base in Fiscal 2026, but production did not keep pace with capacity growth. The gap was particularly visible at Kukshi and Gandhisagar, which together represented 54.55% of reported capacity but only 21.67% of production. The Rs 146.80 crore MS-pipe and liner balance order book indicates disclosed work remaining for execution, but it does not specify the fiscal-year tonnage or timing of fabrication.

The next measure to watch is whether purchase orders and execution raise output at Kukshi, Gandhisagar and other listed MS-pipe sites. Vishal Nirmiti says it intends to seek MS-pipe orders, improve efficiency through mechanised and automated interventions, and use spiral-welded pipe technology for future projects. Vishal Nirmiti has not disclosed a utilisation target, capital-expenditure amount or timetable for those measures.